The Appeal Division of the Administrative Court upheld the disciplinary decision of the Disciplinary Committee constituted under the Capital Market Law which fined Dhorar Insurance RO 5,000 for infringing the provisions of the genera meetings of public joint stock companies.

The details of the story are the incidents which occurred in the annual general meeting of the company on 30^th March 2011 which violated the provisions of Article 75, 117 and 120 of the Commercial Companies Law (CCL) and Article 311 of the Executive Regulation of the Capital Market Law because the company added an item to the agenda of the AGM which was not listed in the business of the AGM approved by CMA and sent to shareholders which is breach of Article 117 of the CCL which stipulates the AGM shall only consider the matters included in the agenda, however, in exceptional cases the GM may consider  an urgent or exceptional matter.

The item was about  freezing the shares of certain shareholders and freezing the shares is not the among the powers of the general meeting which are set out in Article 120 of CCL.

The company also failed to comply with the disclosure of all the resolutions  of the GM of the company through the website of MSM which is infringement of Article 311 of the  Executive Regulation of the Capital Market Law.

The penalty was applied as part of the regulatory role of CMA to protect investors and to achieve fairness and  integrity for all the participants of the market.

CMA calls on all public joint stock companies to comply with the laws and regulations governing the sector so as not to subject to legal action.